The executive admitted that the fund has invested in the cryptocurrency “infrastructure.” She highlighted the potential devaluation that the US dollar could undergo.
Large institutional capitals are entering Bitcoin (BTC) but investors are embracing and defending the cryptocurrency, beyond all the money moving. On this occasion, Dawn Fitzpatrick, investment leader at Soros Fund Management talked about Satoshi Nakamoto’s creation.
According to Fitzpatrick, future central bank digital currencies (CBDC) are only threatening Bitcoin temporarily. The executive assures that they will not be able to permanently destabilizing the pioneering cryptocurrency. She mentioned all the progress that China has been making in this matter to defend its geopolitical interests. From her viewpoint, this is a potential threat for “other bitcoins”, that is, other cryptocurrencies.
The official added that the digital currencies that States issue will come into operation sooner than people expect. Apart from China’s progress, other countries have already activated their CBDCs, such as The Bahamas and its Sand Dollar.
Besides, the director addressed the international monetary landscape, which the COVID-19 pandemic has affected. She is mainly concerned about the increase in money printing in the United States. She considers that this factor has given Bitcoin greater visibility and has led it to be more than a marginal asset.
Several Factors Have Led Investors to Migrate to Bitcoin
Concerning cryptocurrencies, she thinks that it is a very important moment when Bitcoin could have remained a marginal asset. However, she explained that the increase in the money supply in the United States by 25% has caused fear of the devaluation of fiat currencies.
The fund that Fitzpatrick represents has invested in cryptocurrency “infrastructure”, which is at an inflection point. She did not provide details about the amounts or when Soros started to invest in Bitcoin. However, they recently participated in an investor round with Bitcoin Company New York Digital Group (NYDIG).
Soros director does not see Bitcoin as either a currency or a means of payment but as a commodity. She stated that it is easy to store and transfer and has a limited supply. The official finds that these characteristics are influencing gold investors to migrate to BTC. She noted that “Bitcoin is taking away part of its buyer base.”
Current Crisis Gives Greater Prominence to Bitcoin
The COVID-19 pandemic and the increase in money printing have raised the prominence of Bitcoin. The first cryptocurrency has gained ground because its creator conceived it during another crisis involving money printing.
The US Federal Reserve has made reports on the money supply in circulation that has also raised alarms worldwide. In October last year, they had printed 22% of the total existing US dollars, a figure that Fitzpatrick mentioned.
An increasing number of companies are also investing part of their cash assets in Bitcoin, which was unthinkable a few years ago. The Bitcoin Treasuries service estimates that there are already over 1.3 million BTC in institutional hands.
By Alexander Salazar
